2024 (2) TMI 1159 - AT - Service Tax

Levy of service tax - support of services of business and commerce or not - Consignment Agent carried out the handling job - HELD THAT - On an identical set of facts in their own case for an earlier period this Tribunal in M/S THE TINPLATE COMPANY OF INDIA LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE SERVICE TAX JAMSHEDPUR 2023 (9) TMI 1438 - CESTAT KOLKATA has dropped the demand raised against the appellant and therefore the same treatment should be given to the present Show Cause Notice and the demands - it was held in the said case that It is evident from the records and the reports submitted by the ld.Commissioner Jamshedpur that the appellant has not received any amount towards marketing agency agreement therefore the question of demanding service tax does not arise. Following the precedent decision in the appellant s own case for an earlier period the demand raised against the appellant is set aside - appeal allowed.

Summary

Issues involved:
The issue involved in this case is the confirmation of demand of service tax under the category of "support of services of business and commerce".

Summary:
The appellant, engaged in the manufacture and sale of excisable goods, entered into agreements with M/s Tata Steel Limited for manufacturing job as Conversion Agent and Consignment Agent. A third Agreement was also entered into by and between TCIL and TSL, where TCIL was appointed as Marketing Agent for marketing TSL's products. The appellant remained responsible for safe custody of TSL's materials till delivery to designated parties. The Revenue contended that the appellant, under the Marketing Agency Service, was providing services falling under the category of "support of services of business and commerce" and thus liable to pay service tax. Proceedings were initiated and the demand of service tax was confirmed. However, the appellant argued that a previous Tribunal order had dropped a similar demand against them. The Tribunal observed that the appellant had not received any amount towards marketing agency agreement, therefore, the demand for service tax did not arise. Following the precedent decision, the Tribunal set aside the demand and allowed the appeal.

Judgment:
The Tribunal, after hearing both parties and perusing the records, found that the appellant had not received any amount towards the marketing agency agreement, as per the report submitted by the Commissioner, Jamshedpur. Therefore, the Tribunal concluded that the demand for service tax did not arise, similar to the appellant's previous case. In line with the precedent decision, the Tribunal set aside the demand raised against the appellant and allowed the appeal with consequential relief, if any.